Help with overdraft!

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Firstly, this is my first post so please be gentle with me ;)

Ive found myself getting slowly worse off each month. Im at my overdraft limit (£3500), I also have a Master card debt of £2000 which Im struggling to pay even the minimum payment each month.
This has happened over the last 7 or 8 months since coming out of a 13 year marriage. I have a mortgage, work full time and have 2 kids, so the chance of an increase in my income is very small.

I filled out the budget planner which showed a surplus of £227 a month, but thats not allowing for those unexpected extras such as kids parties etc.
What do I do? I have a good credit history, as far as I know. Although I can admit to overspending over the last few months (celebrating my new found freedom) ;) I haven't been to extravagent, the other reason could be the bloody inland revenue who have stopped my tax credits because they had apparently overpaid me so its now stopped completely.
I really want to address this problem before it gets really out of hand, so any advice would be appreciated. :)
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Comments

  • delboypass
    delboypass Posts: 229 Forumite
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    1/ If you dont have the money, then unfortunately there is no EXTRAS. You have to stick rigidly to your budget as that is what you can afford else your debt is never going away.

    2/ Can you post your incoming and outgoing plan so we can give it the once over.

    3/ If the husband still paying his fair share for the upkeep of the kids? Dont know if this is a legal issue so unable to help there.
  • louise1_3
    louise1_3 Posts: 28 Forumite
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    I will post up my outgoings in a bit, thanks for your reply.
    Hubby (ex) is paying 20% of his salary to me as maintanence, which Im happy about, I think!
  • debtbuster2K5
    debtbuster2K5 Posts: 1,515 Forumite
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    Hi Louise.

    Have you checked that you are claiming all the relevant tax credits and benefits that are available to you, as your circumstances have changed recently it may be worth checking this out.

    Go back to the budget planner and include ALL outgoings (Including the kids parties etc), to do this take a rough annual amount and divide by 12. That way you could plan to save the amount every month so that the money is there when the parties etc come round

    This will then give you your true surplus.

    As another poster has already mentioned, it is always wise to post up your incomings and outgoings, so that we can see if there is any way we can reduce your outgoings, to enable more money to be put towards the debt.

    Are you paying for payment protection on the card?, If so It may be wise to cancel it, as they rarely pay out when you need them tooand are generally considered poor value for money..

    Regards
    24 hours in a day. 24 beers in a case ... coincidence? :beer:
  • louise1_3
    louise1_3 Posts: 28 Forumite
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    Ok, here goes:

    Mortgage - £503
    Home insurance - £26
    Council Tax - £93
    Gas - £25
    Electric- £20
    Home phone - £15
    Mobile - £35
    Broadband - £18
    TV licsence - £10
    Food - £200 (approx)
    Car (lease car) £148
    Car insurance - £40 ( approx)
    petrol - £160
    Childcare - £86

    TOTAL £1379

    Income

    Salary - £1190
    Maintanence - £500 (approx)
    Child benefit - £100

    TOTAL - £1790

    Surplus - £411

    I made it £227 earlier, so I may have missed something,lol
  • Dammam
    Dammam Posts: 349 Forumite
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    You didn't list your Mastercard debt on the outgoings - probably accounts for the difference. Also water rates, school dinners etc - these things add up. What's the APR on your Mastercard payments?

    I don't think your too far off the comfort zone.
  • delboypass
    delboypass Posts: 229 Forumite
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    Petrol is fairly high. i spend about £40 a month because I cycle and jog a lot. Was always taught - healthy in body, healthy in mind and is always what i teach to those unfortunate to cross my path when im giving advice. Perhaps ditch the car for those unnecessary journeys.

    Do you have parents you could leave the kid with. i always think its nice to involve the parents. Blood is always thicker than water and hopefully they would nurture the kid better than childcare although attending childcare is also good so your kid doesnt grow up to be a loner
  • delboypass
    delboypass Posts: 229 Forumite
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    With that surplus and some extra saving wherever you can squeeze it, you could possibly be out of debt in a matter of months if you pinch it quickly enough. The problem with credit cards is the interest which you must kill as quickly as possible. Transfer the amount onto a 0% card and then keep hammering it til it goes away then only use cash for purchases in future.

    PS If you do get a new card with 0% dont max it out, dont spend anything on cards - its a killer (literally!)
  • louise1_3
    louise1_3 Posts: 28 Forumite
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    Mastercard debt stands at £1772, the Overdraft is costing me roughly £15 - £20 per month.
    Ive started sending my daughter to school with a packed lunch instead of paying for school dinners, Im sure its a little cheaper.
    Water rates, I need to check that.

    As you said its not that far off breaking even, but how do I clear the debt so that I can start living to a more strict budget?
  • louise1_3
    louise1_3 Posts: 28 Forumite
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    delboypass wrote:
    Petrol is fairly high. i spend about £40 a month because I cycle and jog a lot. Was always taught - healthy in body, healthy in mind and is always what i teach to those unfortunate to cross my path when im giving advice. Perhaps ditch the car for those unnecessary journeys.

    Do you have parents you could leave the kid with. i always think its nice to involve the parents. Blood is always thicker than water and hopefully they would nurture the kid better than childcare although attending childcare is also good so your kid doesnt grow up to be a loner

    Your right, petrol costs are high, but I travel about 26 miles to and from work each day.
    Im in the childcare field so I know all too well about childcare ;) I don't have the luxoury of being able to send kiddies to granparents as they both work too! But they are very helpful at other times so Im not complaining!
  • Dammam
    Dammam Posts: 349 Forumite
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    Have you claimed for tax credits?
    Also, depending on who your mortgage company is, do they allow payment holidays? Even if they don't advertise it, it doesn't hurt to ask - the worst they can do is say no.
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